22
Dec
By First Rate Financial Group
Financial Reports

NAHB: Home Builder Confidence in Housing Markets Slips in December

NAHB: Home Builder Confidence in Housing Markets Slips in DecemberDecember’s National Association of Home Builders Housing Market Index reported slipping builder confidence in U.S. housing markets. The Housing Market Index readings fell every month in 2022. Recently rising mortgage rates, materials costs, and inclement winter weather contributed to builder skepticism about current housing market conditions.

December’s National  Housing Market Index reading of 31 was the lowest since mid-2012 not including readings published during the pandemic. By comparison, the Housing Market Index reading for December 2021 was 84. The three indices comprising the Housing Market Index reported mixed readings in December. Current home sales decreased by three points and home builder expectations for home sales in the next six months increased by four points. Builder expectations of buyer traffic in new housing developments were unchanged from November’s reading.

Regional housing market indices reported mixed index readings, which are seasonally adjusted. The Northeast region reported an index reading of 32 for December, which was unchanged from November. The Midwestern region had an index reading of 30 for December, which was five points lower than November’s reading. The South reported an index reading of 35, which was two points higher than in November. The West reported an index reading of 25 for December, which was three points lower than in November.

Mortgage rates recently fell below seven percent and the pace of home price growth is slowing. High home prices and rapidly rising mortgage rates led more than 60 percent of home builders to offer a variety of buyer incentives including mortgage rate buydowns and paying discount points charged to home buyers for lower mortgage rates.

Building affordable homes: The struggle is real

NAHB home builders expect weaker housing market conditions to continue through 2023 with full recovery starting in 2024. NAHB estimates that there is a shortage of 1.5 million new homes based on buyer demand and homes currently available. Jerry Konter, the chair of NAHB, said that home builders are struggling to keep housing affordable. Construction costs rose by 30 percent since the start of 2022 and there is little room for home builders to cut home prices.

Slower home price growth and lower mortgage rates will help prospective home buyers qualify for mortgages and encourage more buyers to enter the housing market.  

20
Dec
By First Rate Financial Group
Mortgage

Mistakes To Avoid When Organizing Your Home

Mistakes To Avoid When Organizing Your HomeIf your house has a tremendous amount of clutter in it, you might finally think it is time to do something about it. Now is the perfect opportunity for you to get your house organized, and you probably want to start by tackling the piles of clothing and paper in the middle of the floor. Before you jump in feet first, take a look at a few mistakes you need to avoid when organizing your home.

Buying Boxes Before Assessing The Situation

You might be ready to start throwing items in boxes, but you need to assess how much you have first. If you don’t understand just how disorganized your house is, you will have a difficult time purchasing the right storage bins. Make sure you measure your drawers, closets, shelves, and even the space underneath your bed. That way, you understand exactly how many storage bins you need before you go on a shopping spree.

Not Scheduling The Organization Spree Ahead Of Time

You need to pick the right time to organize your house. Make sure you are focused and energetic, but ensure you are not distracted by something that might be more appealing. Even though the right time is not going to magically reveal itself to you, you need to be intentional about when you decide to start organizing your house.

Rearranging Instead Of Organizing

There is a difference between rearranging your house and organizing it. We are arranging your house simply means making it look “neat” and “clean.” It does not necessarily mean it is organized. You need to be intentional about where you place your items, and you must make sure you get rid of items you no longer need. Make sure that once you put an item in a certain location, you want it to stay there for the foreseeable future. This is particularly true when it comes to books, clothing, and pantry supplies.

Avoid These Mistakes When Organizing Your Home

There is no single right way to organize your house, but these are a few of the most common mistakes to avoid. Make sure you have a plan in place before you start organizing your house. That way, you can complete the job in a timely manner. 

19
Dec
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – December 19, 2202

What's Ahead For Mortgage Rates This Week - December 19, 2202Last week’s economic reporting included readings on inflation, retail sales, and the Federal Reserve’s Federal Open Market Committee meeting.  Fed Chair Jerome  Powell held his scheduled post-meeting press conference and weekly readings on mortgage rates and jobless claims were also released.

Federal Reserve Raises Target Interest Rate Range

The Federal Reserve’s Federal Open Market Committee announced its decision to raise the Fed’s target interest rate range to 4.25 to 4.50 percent from its previous range of 3.75 to 4.00 percent.

Fed Chair Jerome Powell said in remarks made during his scheduled press conference, “We’re going into next year with higher inflation than we thought.” Seven Fed officials predicted rising interest rates with the Fed’s interest rate range potentially reaching 5.75 percent. Analysts said that the Fed’s position of controlling inflation at any cost could result in a recession. Chair Powell said it was impossible to predict if a recession would occur and how deep it might go and how long it could last. He repeated the Fed’s commitment to controlling high inflation.

Mortgage Rates, Jobless Claims  Fall

Freddie Mac reported lower fixed mortgage rates last week as the average rate for 30-year fixed-rate mortgages dropped by two basis points to 6.31 percent. The average rate for 15-year fixed-rate mortgages dropped by 13 basis points to 5.54 percent.

Initial jobless claims fell to 211,000 first-time claims filed as compared to the prior week’s reading of 231,000 new jobless claims filed. Continuing jobless claims were reported as unchanged from the prior week with 167,000 ongoing unemployment claims filed.

The Commerce Department reported lower retail sales in November than in October. Retail sales decreased by -0.6 percent in November, which surpassed analysts’ estimates of -0.3 percent. Lower retail sales could suggest an impending recession as consumers hold back on paying rapidly rising prices for non-essential goods and services.

What’s Ahead

This week’s scheduled economic reporting includes readings from the National Association of Home Builders on U.S. housing markets and Commerce Department data on building permits issued and housing starts. Reports on sales of new and previously-owned homes and weekly readings on mortgage rates and jobless claims will also be released.